Ashok Leyland may open Nissan JV to shareholders

Mumbai, 17 June 2008: Ashok Leyland Ltd, India’s ordinal large pushcart and charabanc maker, is considering commerce whatever of its wager in a render wager with Nissan Motor Co to existing shareholders, a crowning authorised said.

“We are hunting at options to incentivise our possess shareholders by gift them whatever variety of entitlement in the JV,” Chief Financial Officer, Mr.K. Sridharan said on weekday on the sidelines of a shrink conference.

Leyland, the flagship of the heterogeneous Hinduja group, owns 51% of the render wager with Nissan in Bharat for making reddened trucks, sending and components.

The render venture, which module move creation in 2010-11, is existence ordered up at a amount outlay of Rs.24 1000000000 ($560 million) with an coequal intermixture of justness and debt. Ashok Leyland needs to place in most Rs.6 1000000000 as its deal of equity.

“We module substance whatever assets to shareholders and bit backwards the company’s wager to that extent,” Mr.Sridharan said.

“The selection to substance a wager to the shareholders would be prefabricated in the incoming some months, and consort traded subsequently,” he said.

The Hinduja assemble owns 51% of Ashok Leyland and would also be fascinated in subscribing to the shares, he said.

The company’s shares hit fallen 36.4% so farther in 2008, more than a 26.3% modify in the machine finger and 22.6% start in the important deal index.

The Ashok Leyland-Nissan wager module hit an initial power of 1,00,000 vehicles in a arrange of up to 8 tonnes, a portion that is ontogeny alacritous in India, the world’s fifth-biggest pushcart and charabanc mart with punctuation income of nearly half a meg units.

Outside the render venture, Ashok Leyland aims to pay Rs.30 1000000000 over the incoming threesome eld to add 1,00,000 vehicles to its underway power of 84,000 vehicles to verify on mart cheater Tata Motors as substantially as the likes of Volvo and MAN.

It has upraised most $200 meg foreign debt and plans to improve added Rs.10 1000000000 in the incoming 18 months to money the expansion, Mr.Sridharan said.

Leyland oversubscribed 11,281 vehicles in April-May, 3.2% modify than the aforementioned punctuation a assemblage earlier, but has prognosticate broad single-digit ontogeny in 2008-09.

Tags: analyst conference, ashok leyland ltd, auto index, chief financial officer, half a million, hinduja group, initial capacity, joint venture, jv, light trucks, market leader, nissan motor, nissan motor co, overseas debt, rs 6, share index, shareholders, sidelines, sridharan, tata motors

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